Holbrook v. Commissioner
United States Tax Court
In an ABC transaction, petitioner (B) furnished a guaranty of a note issued by C to a bank which lent C funds in order to purchase a reserved production payment from A. The guaranty did not extend to C. Held, petitioner had an economic interest in the production payment, with the result that the income attributable thereto was taxable to him.
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined deficiencies of $3,263.45 and $4,314.79 in petitioners’ income taxes for the years 1963 and 1964, respectively. The only issue remaining for our determination is whether petitioners constructively received taxable income of $7,579.51 and $3,356.07 in the years 1963 and 1964 derived from an oil and gas production payment made to a third party because petitioner Finley W. Holbrook guaranteed the payment of a loan by a bank to the third party to finance the purchase of the production payment.
All of the facts have been stipulated and are found…
2Cases cited13 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Estate of NoelSupreme Court of the United States · 1965
- United States v. Rhode Island Hospital Trust CompanyCourt of Appeals for the First Circuit · 1966
- United States v. W. H. CockeCourt of Appeals for the Fifth Circuit · 1968
- Olin Bryant and Vanell Bryant v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1968
8 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Finley W. Holbrook and Faith Holbrook v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Herbel v. CommissionerUnited States Tax Court · 1996
- Producers Supply & Tool Co. v. United StatesDistrict Court, N.D. Texas · 1971
- Finley W. Holbrook and Faith Holbrook v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1971
- Gap Anthracite Co. v. CommissionerUnited States Tax Court · 1972
4 more not listed; retrieve them via the Exa API.